Recent calculations of the amount of digital currencies used by Hamas were found to be inaccurate, as they included funds not directly tied to terrorist financing.
Chainalysis analysts clarified this, stating that in order to have an accurate estimate, one must not only consider the assets directly held by the terrorist organization, but also identify service providers involved in facilitating the movement of funds related to terrorism.
A recent example of this is the sanctioned company Buy Cash, located in the Gaza Strip, that offers money transfers and virtual currency exchange services.
These providers handle a larger amount of funds than the average person, but less than a typical exchange.
Some may function like over-the-counter brokers, while others may operate like street money changers such as hawalas, explained the analysts.
After investigating one wallet associated with the financing of terrorism, experts identified at least 20 suspected service providers, each receiving an amount ranging from $8.4 million to $1.1 billion in digital currencies.
